I'm the guarantor of my friend's car loan. Now his car got sold off my finance co due to default of payment.

Question

I'm the guarantor of my friend's car loan. Now his car got sold off my finance co due to default of payment and I'm being pursued by the finance co to help him to pay up a huge 5 figure amount.

Answer 1

When you co-signed, it meant that YOU WILL GUARANTEE payment if your friend does not pay.  So you should have paid - if you really meant it.

So you are responsible for his payments.

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As you can now see, you should NOT co-sign unless you really mean it.  Co-signing is really for parents, and family who don't mind paying for stuff for each other.

Good Luck...

Answer 2

well thats what happen when you co-sign and you don't know the obligations your suppose to fulfill

Answer 3

As the Guarantor of this loan you have legally promised the finance company that you would accept responsibility for the debt should your friend default.

Also, a good site is...

http://www.surveyland.org/jump.php?link=...

Hope that helps.

Answer 4

So what is your question?  That's what being a guarantor means.  When you sign your name,  you are committing yourself to that loan should your friend default.  Now your "friend" has ruined his credit AND yours.  What a pal!

Call the bank and talk to them, see what you can do to get this straight.  But be prepared to pay off your buddy's loan.  Lesson learned - never co-sign for someone to whom you are not married, or related by 1 generation.